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CLAIM #59271 · Union Pacific Corporation (UNP) · 2022Q3 earnings call · Oct 20, 2022 · due Dec 31, 2023

We're set up well to exceed what the industry is going to do. We're doing that this year. I think we're going to do that again next year, and we're going to have to make hay with it.

Lance Fritz · CEO

PENDING
graded after results covering Dec 31, 2023 are reported

In context

into the back half of 2022 in the 200-plus car velocity. We're essentially there at this point and need to grow from there and then be normal going into 2023, which I anticipate is going to be the case. As we do that, there is, for sure, an opportunity to take excess cost out of the network. Now having said that, we're fighting against pretty significant inflation. You see it in the PEB, but it's across the board on our services and our inputs. We're going to have to overcome that with price, and we anticipate we will. We're confident we will, but that's not helpful on the OR side, right? So you got to create margin somewhere. For us, that's got to be incremental volume. At this point, incremental volume is going to be a more important part of the three-legged stool into the future years. We're set up well to exceed what the industry is going to do. We're doing that this year. I think we're going to do that again next year, and we're going to have to make hay with it. And that's what gives us confidence that we're going to be able to improve margins going into next year. That's the clear path to a 55 operating ratio. And again, I don't think we said it yet today, but reiterating leading the industry in terms of our margins. So Kenny? Kenny Rocker: Yes. I mean, we've said it as a management team, we're going to cover inflation with price. But just to get a little granular here, our commercial leaders have done a really good job sitting now with customers, making adjustments to the rate real time, again, real-time discussions to reflect the inflationary environment that we're seeing to date. And so we're articulating the why behind the need for those adjustments with rates, especially in light of the capital that we're expending and then also the fact th

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SEC filings for UNP · Claim quote is verbatim from the 2022Q3 earnings call.